National Bank of Rwanda Officials Trained on Conducting Macroprudential Analysis

The growing importance of the non-bank sector in financial stability analysis has seen a number of jurisdictions taking steps to include insurance, securities, microfinance and social security sectors in their macroprudential policy frameworks. The importance of the sectors in macroprudential analysis and financial stability assessments was fuelled by the realisation that they contribute to the build-up of systemic risks within the financial system. Through interlinkages with the banking sector, counterparty exposures and other transmission mechanisms, systemic risks from the non-bank financial institutions (NBFIs) may be propagated across the financial system threatening its stability and fomenting crises.

Cognisant of the need to strengthen macroprudential surveillance and analysis in its member countries, MEFMI conducted an in-country workshop on Macroprudential Analysis of NBFIs in Rwanda from 13 – 17 June 2022. The workshop aimed to support efforts by the National Bank of Rwanda (NBR) to extend its macroprudential analysis to NBFIs. The feedback obtained from the participants through the post-event evaluation, suggests that the workshop equipped the participants with knowledge and skills necessary to conduct effective financial stability analysis and identify systemic risks in these sectors. The training was conducted remotely using the Zoom meetings platform and it consisted of 11 practically oriented sessions covering macroprudential policies and tools for assessing systemic risks in insurance, pensions/social security, microfinance and securities markets.

During the workshop, MEFMI trained 10 NBR officials. Three (3) of the officials were female while the rest were male. The 10 officials were joined by two (2) Candidate Fellows, Mr Cuthbert Munjoma from Insurance and Pensions Commission of Zimbabwe and Mr Gerson Kadhikwa from the Bank of Namibia, who are both specialising in Insurance Regulation. The trained officials are expected to utilise the knowledge gained from the workshop to strengthen the Bank’s macroprudential framework thus contributing to financial stability in Rwanda in the intermediate to long term.

A team of resource persons comprising three (3) independent consultants (i.e., Professor Klime Poposki, Mr Rob Rusconi and Mr John Ashcroft), two (2) MEFMI Fellows (i.e., Mrs Racheal Mushosho and Mr Fredrick Shirima) as well as Mr Noel Mahombera (MEFMI Fellow and Programme Manager) facilitated at the workshop.

Prepared by Noel Mahombera